Paul Tucker says Bank of England 'can do a lot better'

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Media captionRobert Peston interviews the deputy governor of the Bank of England, Paul Tucker

The Bank of England "can do a lot better job" of regulating the financial system, its deputy governor Paul Tucker has told the BBC.

The Bank's new Financial Policy Committee will meet for the first time on Thursday.

Its job is to take action if it decides that banks and other financial institutions are taking too much risk.

It is hoped that the committee will be able to prevent another crash of the sort that happened in 2007-8.

"We can do a lot better job than in the past. There were warnings, from this institution, some from the FSA, many from abroad, and yet no one picked up the warnings and ran with them," Mr Tucker said.

His role already covers financial responsibility.

BBC business editor Robert Peston said: "Some regard it as slightly odd that the Bank of England's punishment for not preventing the greatest shock in several generations to the stability of the British economy is to be given even more responsibilities."

The committee, which will meet four times a year, will be chaired by Bank of England governor Mervyn King and will include other Bank of England executives, regulators and some external experts.

One of the people appointed, former CBI boss Sir Richard Lambert, resigned from his post before the committee had held its first meeting.

"Can we promise it'll never happen again over 100 years, 150 years? No it would be silly for me to say that," Mr Tucker said.

"But can we do a much better job than happened in this country over the last 15 or 20 years? Yes we can."

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